>The current EU rules mean that if Vat on fuel was reduced to 9pc to ease the financial burden on families and businesses, it could not return to 13.5pc – but rather would have to be charged at the highest rate of 23pc.
Don’t celebrate this unless Martin can secured agreement that it can return to 13.5%
The hospitality 9% rate was never passed on to the consumer during the last recession, why would this be any different?
So we are on 13.5 and he’s getting it reduced to 9 but that agreement means when it goes back up it has to go back up to 23, wtf, have l got that right?
That’s all well and good, but are the government going to get an agreement from businesses to lower their prices and not simply pocket the difference in the VAT reduction?
What I don’t understand is why we are trying to cut VAT by about 3% and ignoring the excise duty. Surely we could just cut that instead?
[deleted]
Title is a little misleading, diesel and petrol are all at 23%.
When I see fuel I automatically think of Diesel and unleaded.
* Use deaths of Ukrainian children as an excuse to increase profits extracted from an already stretched populace
* Stockpile to give impression of shortage
* Get cheaper fuel from suppliers pumping more to meet demand
* Government reduce the amount taken as tax for the public purse leaving even more money for you
How do I get involved in the oil and fuel trade in Ireland? Asking for a friend.
A drop in VAT might not be passed on to the customer. Such a drop won’t make any difference to the people nor the government coffers until a windfall tax is implemented on businesses and corporations who will try to game the vat drop to simply increase their profits. Not likely to happen.
Surely, as businesses already reclaim vat on all fuel purchases this only benefits the consumer buying their petrol / diesel at the pumps. No impact on businesses underlying costs from this that I can see.
Is a reduction on VAT the way? It’s a kind of short term solution that benefits everyone – including those that drive around in expensive SUVs and could afford the higher prices.
I’d rather see an initiative to improve public transport & reduce its cost as well as incentives/schemes to help people buy electric cars & a means tested price per litre for fuel so that those that genuinely can’t afford it and have no public transport option at the minute can still afford to live there life and get to work, school, shops etc.
A second thing I approve of Micheál for (the first being the smoking ban, how many years ago???).
This would be short-sighted, would quickly end up in the pockets of the fuel multinationals as we saw a few weeks ago, the last time we reduced tax on fuel.
Would be better taking the difference and ring fencing it for improving public transport across the island, building that bloody metro in Dublin NIMBYs be damned, improving rail links to major cities (and bringing down the cost of tickets so that the train is cheaper than a flight for fuck’s sake), and dramatically increasing the funding to grants such as for insulation, sustainable energy generation, and for moving to more sustainable forms of transport.
Make it so that the cost of fuel matters less and less to the average consumer over time rather than keeping us dependant on it while simultaneously transferring money directly from the public coffers into the pockets of shareholders of BP, Exxon, and Shell.
Who is willing to bet businesses are just gonna pocket the difference? And the customer won’t see any saving ? Or else everything will be 9percent more expensive.
Wait a minute, the price of oil is down to where diesel was 1.19 years ago… I’m expecting to see that at the pump in the next day or two considering how quickly it jumped.
What will this save us, 60 euro a year? When the Government announced the payment of 200 euro on each bill SF were acting like that was an inferior option to a VAT cut
16 comments
>The current EU rules mean that if Vat on fuel was reduced to 9pc to ease the financial burden on families and businesses, it could not return to 13.5pc – but rather would have to be charged at the highest rate of 23pc.
Don’t celebrate this unless Martin can secured agreement that it can return to 13.5%
The hospitality 9% rate was never passed on to the consumer during the last recession, why would this be any different?
So we are on 13.5 and he’s getting it reduced to 9 but that agreement means when it goes back up it has to go back up to 23, wtf, have l got that right?
That’s all well and good, but are the government going to get an agreement from businesses to lower their prices and not simply pocket the difference in the VAT reduction?
What I don’t understand is why we are trying to cut VAT by about 3% and ignoring the excise duty. Surely we could just cut that instead?
[deleted]
Title is a little misleading, diesel and petrol are all at 23%.
When I see fuel I automatically think of Diesel and unleaded.
* Use deaths of Ukrainian children as an excuse to increase profits extracted from an already stretched populace
* Stockpile to give impression of shortage
* Get cheaper fuel from suppliers pumping more to meet demand
* Government reduce the amount taken as tax for the public purse leaving even more money for you
How do I get involved in the oil and fuel trade in Ireland? Asking for a friend.
A drop in VAT might not be passed on to the customer. Such a drop won’t make any difference to the people nor the government coffers until a windfall tax is implemented on businesses and corporations who will try to game the vat drop to simply increase their profits. Not likely to happen.
Surely, as businesses already reclaim vat on all fuel purchases this only benefits the consumer buying their petrol / diesel at the pumps. No impact on businesses underlying costs from this that I can see.
Is a reduction on VAT the way? It’s a kind of short term solution that benefits everyone – including those that drive around in expensive SUVs and could afford the higher prices.
I’d rather see an initiative to improve public transport & reduce its cost as well as incentives/schemes to help people buy electric cars & a means tested price per litre for fuel so that those that genuinely can’t afford it and have no public transport option at the minute can still afford to live there life and get to work, school, shops etc.
A second thing I approve of Micheál for (the first being the smoking ban, how many years ago???).
This would be short-sighted, would quickly end up in the pockets of the fuel multinationals as we saw a few weeks ago, the last time we reduced tax on fuel.
Would be better taking the difference and ring fencing it for improving public transport across the island, building that bloody metro in Dublin NIMBYs be damned, improving rail links to major cities (and bringing down the cost of tickets so that the train is cheaper than a flight for fuck’s sake), and dramatically increasing the funding to grants such as for insulation, sustainable energy generation, and for moving to more sustainable forms of transport.
Make it so that the cost of fuel matters less and less to the average consumer over time rather than keeping us dependant on it while simultaneously transferring money directly from the public coffers into the pockets of shareholders of BP, Exxon, and Shell.
Who is willing to bet businesses are just gonna pocket the difference? And the customer won’t see any saving ? Or else everything will be 9percent more expensive.
Wait a minute, the price of oil is down to where diesel was 1.19 years ago… I’m expecting to see that at the pump in the next day or two considering how quickly it jumped.
What will this save us, 60 euro a year? When the Government announced the payment of 200 euro on each bill SF were acting like that was an inferior option to a VAT cut